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EUR/USD and GBP/USD edge up as USD/JPY falls back

Dollar weakness has driven further gains in EUR/USD and GBP/USD, while leaving USD/JPY at risk of further weakness.

EUR/USD resumes its move higher

After consolidating yesterday, the price of EUR/USD is now moving up once again, targeting a move above the 50-day simple moving average (SMA) at $1.2155, and then on towards $1.22.

Further gains would mark a new run at the January high above $1.23. The bullish view remains in place following the creation of the higher low this week, so a reversal below this is needed to indicate some more near-term weakness.

GBP/USD eyes $1.39

The pair GBP/USD continues to make steady gains, having cleared trendline resistance earlier in the week. More gains look likely unless the sellers can reassert control and drive the price back down below $1.37.

USD/JPY stabilises above 100-day SMA

The drop from the recent high has stalled for now, with the price of USD/JPY finding support at the 100-day SMA (¥104.43). Further declines below this level would also see it push below the high from early January, enhancing the bearish view.

If the buyers can maintain control and send the price back upwards, then ¥105.60 comes into view.

This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. Any research provided should be considered as promotional and was prepared in accordance with CFTC 1.71 and designed to promote the independence of investment research. See our Summary Conflicts Policy, available on our website.

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